Ricardo Pillai
2 min read
In This Article:
We came across a bullish thesis on Chubb Limited (CB) on Substack by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on CB. Chubb Limited (CB)'s share was trading at $291.96 as of May 20th. CB’s trailing and forward P/E were 14.06 and 13.48 respectively according to Yahoo Finance.
An insurance agent at their desk consulting a customer about property & casualty insurance.
Chubb (CB), the world’s largest publicly traded property and casualty insurer, raised its quarterly dividend by 6.6% to $0.97 per share despite a costly $1.64 billion wildfire impact in California. This dividend increase, payable July 3, reflects confidence amid a challenging Q1 2025 where net income fell 38% year-over-year to $1.33 billion ($3.29/share) due to pre-tax catastrophe losses. However, core operating income remained robust at $1.49 billion ($3.68/share), supported by a 3.2% rise in P&C net premiums to $10.93 billion and a 12.2% jump in investment income to $1.56 billion.
The company maintained a strong underlying performance, with an ex-catastrophe combined ratio of 82.3% and a 5.3% increase in life insurance premiums to $1.72 billion. Returning $751 million to shareholders through $385 million in buybacks and $366 million in dividends underscores Chubb’s resilience and disciplined capital allocation, signaling stability and shareholder value growth despite short-term headwinds. Also, check out Everest Group (EG), a top global reinsurer focused on P&C and specialty insurance.
Chubb Limited (CB) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held CB at the end of the fourth quarter which was 51 in the previous quarter. While we acknowledge the risk and potential of CB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
